Investor Centre : Press Releases
Simbhaoli Sugars announces results for Q1FY07 Revenue at Rs 216.03 crore
FY2007 performance overview (all comparisons with Q1 FY 2006)
- Net sales at Rs 164.43 crore, an increase of 20% from Rs 136.99 crore,
- Net Profit at Rs 8.72 crore, 24% increase from Rs 7.05 crore,
- Revenue segmentation
- Sugar: Rs 147.88crore, 68.45% of the total revenue during the quarter
- Distillery: Rs73.69 crore, 34.11% of total revenue
New Delhi , July 31, 2006 : The Simbhaoli Sugar Mills Limited (BSE SCRIP CODE: SIMBHALS; NSE SYMBOL: SIMBHSUGAR), the largest integrated sugar refinery in India, has posted 24 % rise in net profit at Rs 8.72 crore for the first quarter ended June 30, 2006 (Q1FY07) as compared to Rs 7.05 crore for the quarter ended June 30, 2005 (Q1 FY06). The company registered net sales of Rs 164.43 crore, up by 20% over the corresponding quarter of the last fiscal. This was despite the lower volumes of sugar sold (at 5.64 lakh quintals in Q1 of the current fiscal as against 6.86 lakh quintals in the corresponding previous quarter) and an increase in realisation to Rs 1943 per quintal. The EPS for the quarter was at Rs. 4.36.
The increase in revenue was on account of 23.10% increase in revenue from the distillery segment of the company, which increased to Rs 73.69 crore in Q1 FY 07 from Rs 59.86 crore in corresponding previous quarter. The revenue from sugar business also registered a growth of 19.62% to Rs 147.88 crore in the quarter ended June 30, 2006 as against Rs 123.63 crore in the corresponding quarter last year.
Commenting on the results, Dr. G.S.C Rao, Executive Director, Simbhaoli Sugars said, “The distillery business of the company has shown a commendable contribution to sales, where the EBIDTA margins have gone up from 3% to 6.2%. This has been due to the 12% increase in the country liquor sales and lower cost of molasses. This performance will be boosted further with the completion of the Chilwaria ethanol distillery by the end of August 2006. We also expect a similar performance from the sugar, ethanol and cogeneration segments in the coming years with all the expansion plans of the company being completed by March 2007. Currently, all projects are going as per schedule and approximately half of the project activities have been completed. The increased capacity would have better realizations and give further boost to our sales and profitability”.
The company also registered profits from trading of sugar, which it started for the first time in this quarter. The Brijnathpur sugar division of the company is also scheduled to start from November 2006.
“We saw a sharp increase in the sale of branded and value added sugar this quarter as compared to the corresponding quarter in the last fiscal. The Q1 FY07 was also marked by a sharp increase in the sale of IMFL, raising the turnover from the segment by almost four times. Moreover, we see ethanol as an important area for the future of the company with prevailing high prices of petrol and the mandate of 5% blending of ethanol in petrol being applicable in all states from October this year. The company has also created international and domestic sugar trading as an independent thrust activity for the future”, added Mr. Sanjay Tapriya, Director- Finance, Simbhaoli sugars.
With a product portfolio diversified into a wide range of speciality sugar, potable alcohol, and bio-manure, apart from standard sugar, cogeneration and ethanol, the company expects revenues from several segments and thereby foresees a robust year ahead.